The pillars of AI are shaking beneath our feet

AI firms are facing growing pressure as investors question whether enormous spending on the technology will produce lasting profits. The article argues that recent stock declines, public opposition to data centre expansion and political uncertainty are unsettling the optimism that has driven the AI boom.

Alphabet’s share value reportedly lost $500 billion after the company said its AI search features were affecting advertising revenue, while a broader sell-off hit technology firms and chipmakers. Nvidia, whose chips and CUDA platform underpin much of the AI industry, also came under scrutiny after chief executive Jensen Huang acknowledged an affair with Alice Huang, prompting an internal national security investigation. The article says concerns about regulation, infrastructure spending and profitability remain, though a full AI bubble burst has not yet occurred.